Correlation Between Surapon Foods and CP ALL
Can any of the company-specific risk be diversified away by investing in both Surapon Foods and CP ALL at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Surapon Foods and CP ALL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Surapon Foods Public and CP ALL Public, you can compare the effects of market volatilities on Surapon Foods and CP ALL and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Surapon Foods with a short position of CP ALL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Surapon Foods and CP ALL.
Diversification Opportunities for Surapon Foods and CP ALL
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Surapon and CPALL is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Surapon Foods Public and CP ALL Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CP ALL Public and Surapon Foods is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Surapon Foods Public are associated (or correlated) with CP ALL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CP ALL Public has no effect on the direction of Surapon Foods i.e., Surapon Foods and CP ALL go up and down completely randomly.
Pair Corralation between Surapon Foods and CP ALL
Assuming the 90 days trading horizon Surapon Foods Public is expected to generate 0.84 times more return on investment than CP ALL. However, Surapon Foods Public is 1.18 times less risky than CP ALL. It trades about 0.04 of its potential returns per unit of risk. CP ALL Public is currently generating about -0.07 per unit of risk. If you would invest 690.00 in Surapon Foods Public on August 28, 2024 and sell it today you would earn a total of 5.00 from holding Surapon Foods Public or generate 0.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Surapon Foods Public vs. CP ALL Public
Performance |
| Timeline |
| Surapon Foods Public |
| CP ALL Public |
Surapon Foods and CP ALL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Surapon Foods and CP ALL
The main advantage of trading using opposite Surapon Foods and CP ALL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Surapon Foods position performs unexpectedly, CP ALL can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in CP ALL will offset losses from the drop in CP ALL's long position.| Surapon Foods vs. Lee Feed Mill | Surapon Foods vs. GFPT Public | Surapon Foods vs. Thai Vegetable Oil | Surapon Foods vs. Sermsuk Public |
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Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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